Versatile Mixed-Use Investment
For Sale
$1,150,000
5724 S College Ave, Fort Collins, CO 80525
Dual-building setup with office, residential-style space, and industrial functionality.
Property Size6,402 SF
Lot Size0.40 Acres
Price / SF$256.70
Days on Market156
Property Features for 5724 S College Ave
General Information
Standard status
Active
Size
6,402 SF
Lot size
0.40 Acres
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$19,106
Building Details
Building Size
6,402 SF
Year Built
1966
Units
2
Listing Agency:
RESIDENT REALTY SOUTH METRO
(720) 290-4784
Listed By:
Chris Venne · License #100030024
(720) 290-4784
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 6:17AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RESIDENT REALTY SOUTH METRO
Investment Insights
Based on property information with market context.
This South Fort Collins commercial investment features a dual-building setup that combines office, residential-style space, and industrial functionality. The front building includes 1,480 square feet on the main level with a full, finished 1,480 square foot walkout lower level. The front building is complete with private offices, a spacious conference room, two wood burning fireplaces, two remodeled kitchens that include a washer and dryer, and three updated bathrooms. The second building provides upper-level office space along with nearly 3,000 square feet of heated and cooled warehouse/shop area, equipped with water, a half bath with deep sink, one double and two single overhead doors. The property benefits from a private parking area and upper parking area, excellent visibility, and convenient access from Highway 287. The property has all major systems professionally installed and certified, including a sprinkler system, three-phase electrical, HVAC, and plumbing. The shop has a C1D1 rated room and a C1D2 rated room. Situated in the Fort Collins Rec/Med Retail Zone, the property is suited for cannabis operations such as cultivation, testing, and manufacturing of infused products (MIP). The property is also suitable for non-cannabis business opportunities. The property was leased to an extraction MIP business through September 2025. With traffic counts, billboard potential, and a location in the South Fort Collins corridor, this property offers a chance to acquire a cash-flowing investment or business site with billboard potential.
Key Highlights
- Prime South Fort Collins location with excellent visibility and convenient Highway 287 access.
- Dual‑building setup: Office/residential‑style space plus a 3,000 sq ft heated/cooled warehouse/shop.
- Fort Collins Rec/Med Retail Zone allows for cannabis operations (cultivation, testing, MIP).
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$63,714
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.54%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,274,280
$1.3M
Cap Rate 7%
$910,200
$910.2K
Cap Rate 9%
$707,933
$707.9K
Market Conditions
NOI Build-Up for 4,480 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$110.2K $24.60/SF
− Vacancy
−$8.3K −$1.85/SF
EGI
$101.9K $22.76/SF
− OpEx
−$38.2K −$8.53/SF
NOI
$63.7K $14.22/SF
Area
Fort Collins, CO
Vacancy
7.50%
Lease Rate
$24.60 /SF/Yr
Expense Ratio
37.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,274,280
Cap Rate 7%
$910,200
Cap Rate 9%
$707,933
Alternative Uses
Best Use
Mixed Use
$910.2K
$796.4K – $1.06M
NOI $63,714 @ 7.0% cap · market cap 5.54%
Second Best
Office B
$898.1K
$785.8K – $1.05M
NOI $62,865 @ 7.0% cap · market cap 5.47%
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,661 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,143
Businesses Nearby
Explore this area
Business Placement
Demographics for 80525, CO
55,901
Population
25,144
Households
2.2
Avg Household Size
37
Median Age
59%
College-Educated
98%
High-School Grad
23.4 sq mi
ZIP Area
2,389
Density / Sq Mi
$93,349
Median Household Income
$48,876
Median Earnings
$1,744
Median Rent
$563,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Dual-building setup with office, residential-style space, and industrial functionality.
Where is this mixed-use property located?
The property is located at 5724 S College Ave Fort Collins, CO.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Prime South Fort Collins location with excellent visibility and convenient Highway 287 access.; Dual‑building setup: Office/residential‑style space plus a **3,000 sq ft heated/cooled warehouse/shop.**; Fort Collins Rec/Med Retail Zone allows for cannabis operations (cultivation, testing, MIP).
